[Alpha Biz= Reporter Kim Minyoung] Eugene Investment & Securities evaluated Golfzon's Q2 performance on the 30th, stating that the company's results fell short of market expectations. However, the analysis indicated that with the cumulative number of franchises and systems still setting new records, the prospects for future performance improvement remain positive. The target price was lowered from 110,000 KRW to 100,000 KRW, but the 'Buy' rating was maintained.
Golfzon's Q2 revenue decreased by 0.6% year-on-year to 160.7 billion KRW, and operating profit dropped by 16.7% to 25.6 billion KRW.
Eugene Investment & Securities explained, "The significant decline in operating profit compared to the same period last year was due to a drop in the average selling price (ASP) caused by an increase in the revenue proportion of golf simulator upgrades, reduced profitability from the struggling golf practice range (GDR) business, and increased costs for overseas expansion."
The firm added, "Despite the weak consumer sentiment affecting the GDR business and a decline in overseas business revenue, it is positive that franchise business revenue, which accounts for a large portion of total sales, increased by 14.1% year-on-year. Particularly, the number of franchises reached 2,652 and the cumulative systems reached 42,205, increasing by 9.7% and 15.5% year-on-year, respectively, continuously setting new records."
Eugene Investment & Securities also noted, "Golfzon is expected to continue stable performance growth in the franchise business in Q3, driven by the launch of the new product 'TwoVisionNX.' It forecasts revenue and operating profit to grow by 2.1% and 9.6% year-on-year to 173.6 billion KRW and 30.2 billion KRW, respectively."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
